The law recognizing the first cryptocurrency as a legal means of payment can be unconstitutional and disastrous for El Salvador. This opinion is set out in the lawsuit of a group of citizens, according to the newspaper El Mundo.
The initiator of the trial was Jamie Guevara of the opposition Farabundo Martí National Liberation Front.
According to civil plaintiff Oscar Artero, the authorities have not developed a sufficient legal basis for the recognition of digital gold as a means of payment.
“The law on bitcoin is needed in order to rob the pockets of people, it is exempt from taxes, they want to force us to trade, ”said Artero.
The plaintiff expressed hope that his position will be supported by the Constitutional Chamber of the Supreme Court. He did not specify which point of the document contradicts the main law of the country.
According to a survey by the Chamber of Commerce and Industry of El Salvador, eight out of ten residents are against payments in the first cryptocurrency.
On June 9, 2021, the authorities recognized bitcoin as an official means of payment in El Salvador, on a par with the US dollar.
The initiative did not find a response among local money transfer services – only a few integrated support for digital gold.
Experts have come to the conclusion that the adoption of cryptocurrency can equally stimulate both the inflow of investments to El Salvador and the withdrawal of capital.
According to JPMorgan analysts, the decision threatens the relationship with IMF, on whose help the economy of El Salvador depends. Fund spokesman Jerry Rice said that the legalization of cryptocurrency could entail a number of risks and regulatory problems.
The Central American Bank for Economic Integration has announced support for El Salvador on the implementation of bitcoin. The World Bank declined to help the country, citing environmental and transparency concerns.
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